💰
Capital Gains Deferred
Defer 15–20%+ in federal tax
🔄
Unlimited Exchanges
Repeat as many times as you want
📈
Wealth Compounding
Keep 100% of equity working for you
🏠 Who Uses 1031 Exchanges?
- •Individual real estate investors
- •Commercial property owners
- •Residential rental property owners
- •Partnerships, LLCs, and corporations
- •Trusts and estates
- •Real estate agents growing portfolios
✅ Key Benefits
Tax Deferral: Postpone capital gains and depreciation recapture taxes
Portfolio Growth: Upgrade property size, quality, or location
Diversification: Swap into different property types or markets
Estate Planning: Heirs may receive a stepped-up basis — taxes may vanish
⚠️ Key Limitations
Primary Residence: Does NOT qualify — investment use required
Boot: Cash/debt relief received triggers taxable gain
Same Taxpayer: Selling and buying entities must match
Time Limits: Strict 45-day ID and 180-day closing deadlines
📜 Legal Foundation
Section 1031 has existed since 1921. The 2017 Tax Cuts and Jobs Act narrowed it to real property only. The IRS requires a Qualified Intermediary (QI).
IRS Code §1031Since 1921Real Property Only
📋
Get the Free 1031 Exchange Checklist
Enter your name and email and we'll send it right to you.
